Investigation of Directional and Functional Relationships of Australian Dollar Exchange Rate,Steam Coal Export,and Steam Coal Price

The interesting finding in this article is that the Australian coal exporter's loss, which occurs due to a strong Australian dollar, is less than the profit from increasingly higher prices of Australian steam coal. For this reason, Australian steam coal exporters choose to export more when the price is high. The empirical results of this analysis confirm that for each one cent increase in Australian dollar value against the U.S. dollar, the Australian steam coal price increases by 0.8182 U.S. dollars and for each additional one million tons export of Australian steam coal, the Australian steam coal price increases by 1.752 U.S. dollars.